Chances are you have heard of IRAs, also known as 401ks. What you might not be familiar with are Self-Directed IRAs; sometimes referred to as checkbook IRA. While in many ways they are the same as traditional IRAs, there are some advantages you should be aware of before you decide to open a Self-Directed IRA.
What are Self-Directed IRAs?
Like traditional IRAs, this type of investment is a tax-deferred or tax-free investment. Depending on the type you select, it may also provide yearly tax deductions as well as asset protection.
What sets a Self-Directed IRA apart is that it comes with an almost unlimited range of investment options. Also, as the owner of the IRA, you can decide which investments to select.
In addition to the more traditional investments of CDs, bonds, stocks, and mutual funds, a Self-Directed IRA also allows investments in tax liens, foreign currency, real estate, notes, precious metals, and other alternative investment types.
This means a Self-Directed IRA is a good fit for the investor that wants to take more control over their investing and their financial future. With a Self-Directed IRA, you can protect your assets today as well as down the line for your family and for future generations.
4 Advantages of Self-Directed IRAs
When considering a Self-Directed IRA, there are several advantages that you should be aware of, so you can make the right decision for your investing needs. These advantages include the following:
1. Creating Wealth for Future Generations
Depending on the type of Self-Directed IRA you select, it can be passed on to your beneficiaries. Also, there are almost no additional tax implications when this asset is passed on, which helps move wealth from one generation to the next.
2. Creating Diversity in Your Investment Portfolio
Because there are so many additional alternative types of investments you can select for this type of IRA, it allows you to diversify your investments. In addition, you can select the types of investments you are the most comfortable with and know the most about.
If you are looking for more control over your investments, but don’t want to lose your tax advantages, a Self-Directed IRA could be a great option.
4. Protecting Your Assets
Current bankruptcy laws protect Self-Directed IRAs, so if the worst happens, these assets should be secure. This isn’t true of all types of investments, so while you may be in good financial shape today, if something were to happen in the future, you could rest assured, these assets would still be there for you and your family.
5. Creating Tax Advantages
Due to the tax advantages that come with the Self-Directed IRA, which include tax-deferred profits, the ability to create future wealth may be increased.
Connect with BP Financial to Open a Self-Directed IRA Today
The experienced professionals at BP Financial can help you find the right Self-Directed IRA for you and your personal situation. We are always happy to answer any questions you may have.
So, don’t wait, give us a call today, and let us help select the right Self-Directed IRA for you.